RXH.AX WACC - Weighted Average Cost of Capital
The WACC of Rewardle Holdings Ltd (RXH.AX) is 10.5%.
| Range | Selected | |
| Cost of equity | 9.6% - 12.8% | 11.2% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.6% - 4.6% | 4.6% |
| WACC | 9.0% - 11.9% | 10.5% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.09 | 1.27 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 12.8% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 4.6% | 4.6% |
| After-tax WACC | 9.0% | 11.9% |
| Selected WACC | 10.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RXH.AX | Rewardle Holdings Ltd | 0.1 | 0.64 | 0.6 |
| 3696.T | Ceres Inc | 0.4 | 1.61 | 1.26 |
| 6988.HK | Joy Spreader Interactive Technology Ltd | 0.1 | 1.7 | 1.59 |
| CM8.AX | Crowd Media Holdings Ltd | 0.06 | 2.01 | 1.93 |
| EGG.AX | Enero Group Ltd | 0.3 | 1.49 | 1.23 |
| EN1.AX | Engage:BDR Ltd | 0.11 | 0.86 | 0.8 |
| GTN.AX | GTN Ltd | 0.1 | 0.44 | 0.41 |
| PPL.AX | Pureprofile Ltd | 0.09 | 1.77 | 1.66 |
| R3D.AX | R3D Resources Ltd | 0.24 | 1.57 | 1.34 |
| RLG.AX | Roolife Group Ltd | 0.19 | 0.9 | 0.8 |
| Low | High | |
| Unlevered beta | 1.06 | 1.29 |
| Relevered beta | 1.13 | 1.4 |
| Adjusted relevered beta | 1.09 | 1.27 |
RXH.AX's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for RXH.AX:
cost_of_equity (11.20%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.09) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.